Sengpheth SENGMEUANG Laos Agricultural policy Laboratory Kyushu University March 29, 2011

1. Topic:Impact of Commercial Agricultural Production on Poverty Reduction:A case study of Vientiane Province Sengpheth SENGMEUANG Laos Agricultural policy Laboratory Kyushu University March 29, 2011

2. Contents • Introduction • Problem overview • Study area • Research objectives • Scope of study • Method of study • Result expectation

3. Introduction • Area: 236,800 sq km • Population : 6.7 Million (2008) • GDP per capita: 1,069 USD (2008-2009) • Agriculture: 38.6% • Industry: 35.7 % • Service: 25.7 % • Export of agricultural production: 923.64 million USD (2006-2007) • Agriculture and forestry: 15.95% • Manufacturing and Handicraft: 17.15% • Electricity and Mining: 66.9%

4. Problem Overview • In Laos, a large majority of the population depends on agriculture and use of natural resources for livelihood, and most of them living in the rural areas. • Laos is one of developing country as based on agriculture and natural resources to boost economic growth. • In 2006, Lao government applied the new policy called Commercialization of Agriculture and Commodity Production (shift from household consumption to a market based agricultural production). Source: Lao National Socio-Economic Development Plan(2006-2010)

5. Problem Overview (Con’t) • The poverty is defined as the lack of ability to fulfill basic human needs such as not having enough food, lacking adequate clothing, not having permanent housing and lacking access to health, education and transportation services Source: decree of poverty (Laos)

6. Study Area Vientiane Province

7. Research objectives • To understand the policies and situations of agricultural commercial productions in Laos • To investigate impact of agricultural productions on households‘ income to boost poverty reduction.

8. Scope of study • The research will be conducted in the poor district. • The research is implementing and promoting of commercial crops production. • The villages and family farmers who has started practicing commercial crops will be priority focused

9. Method of study • Preparing and gathering the general information of the focus area such as planted area, harvested area, yield, production and etc. • Study the transaction of goods in that area, which shows the market chain of products by surveillance and questioners. • Summarize the data information from research and holding seminar for getting feedback and recommendation from relevant sector and communities.

10. Result expectation • Identify the potential commodity product of a poorest district • the collaboration among communities, private and government sector in promoting commodity products • Recommendations for further development of promote the products in order to contribute to generate income to household and improve living standard

11. References • Lao National Socio-Economic Development Plan(2006-2010) • Socio-Economic Development Plan of the Ministry of Industry and Commerce (2006-2010) • The Manufacture and Commerce Developed Strategy (2011-2020): the Ministry of Industry and Commerce. • National Growth and Poverty Eradication Strategy, Government of Lao PDR, 2004

12. Thank you!

13. Study on the Factors that Caused Increasing Food Prices in LaosCase study: Pork in Vientiane Capital. Sengpheth SENGMEUANG Agricultural policy Laboratory Kyushu University May 17, 2011

14. Contents • Introduction • Problem Overview • Study Area • Study Objectives • Method of study • Expected result

15. Introduction According to the World Bank’s food price index , the Global food prices continue to rise. The prices increased by 15% between October 2010 and January 2011 and are only 3% below its 2008 peak. Source: http://www.worldbank.org/foodcrisis/food_price_watch_report_feb2011.html , 15th May 2011

16. Introduction Besides, the price of crude oil has risen from USD 28.1 (2003) to USD 133.37 per barrel in 2008, and decreased rapidly at USD 39.09 in 2009 and continues risen to USD 109.53 in 2011. Source: EIA Weekly Petroleum Status Report; 16th May 2011

17. Problem Overview Laos is one of developing country that relies on agriculture etc. to boost economic growth. Besides, Laos experienced GDP growth of 7,5% per year, which is 914 USD in 2009. The structure of the GDP is as follows: 38.6% agriculture, 35.7% industry (10.2% manufacturing) and 25.7% services. Source: MOIC and National Socio-Economic Development Plan (2006-2010) http://www.nsc.gov.la/

18. Problem Overview But Laos imports almost all the material for agriculture, livestock and industry as material for garment, fertilizers, food for animal etc. Moreover, Laos import 100 percent of fuel. And Laos farmers largely dependent on that material to input to food processing and transfer goods to market or factory. Import value is 1,670.97 million USD in 2009-2010 with 23.17% for fuel and gas, 6.27% for foods, 4.89% for goods to agriculture production, and 2.53% for goods to industry production etc. Source: MOIC and National Socio-Economic Development Plan (2006-2010)

19. Study Area Vientiane Capital • Area: 3,920 sq km • Population: 795,159 people (Growth rate 3.3 %) • Economic growth: • 2001-2005 = 9.79%. • 2006-2008 = 11%. • GDP per capita: 1,829 USD per year Source: MOIC

20. Study Area Vientiane Capital • Pork Demand per day: 40 tons (2008) • Pork supply: Vientiane. C and Khammouane province. Source: MOIC

21. Study objectives • To study the main cause of price increases in pork due to oil price, the depreciation of the dollar etc. • to examine if the oil price or the Kip appreciation has the main impact on pork prices.

22. Scope of study • The research will be conducted in the market channel of Vientiane Capital. • The research is implementing of pork price structure in each level of market chain. • The farmers, middleman and slaughter house will be priority focused

23. Method of study • Preparing and gathering the general information of the focus area such as farm, demand/supply, oil price(inside/outside), exchange rate (Thai Bath and USD to Kips) • Study the transaction of goods in that area, which shows the impact factors on market chain of products by surveillance and questionnaires. • Summarize the data information from research and analysis

24. Expected result • Identify the significant factor that impact on pork price rising and also can be basic for study further. • Help to planning policy on create stability of agriculture and foods product price. • Understand the price structure of pork and connected food products.

25. References • National Socio-Economic Development Plan (2006-2010) • The Manufacture and Commerce Developed Strategy (2011-2020): the Ministry of Industry and Commerce. • World Bank: Food Prices Watch in Feb 2011. Retrieved on May 15th 2011 from http://www.worldbank.org/foodcrisis/food_price_watch _report _feb2011.html • Asia Monitor: Macroeconomic Forecast Laos (Feb 2nd 2011). Retrieved on May 15th 2011 from http://www.asia-monitor.com/ file/7476/laoshomepage.html • EIA weekly Petroleum Status Report: Monthly West Texas Intermediate Crude Oil Prices. Retrieved on May 16th 2011 from http://www.eia.gov/emeu/steo/pub/cf_query/steoNotes.cfm?formula=WTIPUUS&periodType=Monthly&startYear=2003&startMonth=1&startQuarter=1&endYear=2011&endMonth=5&endQuarter=4 • Lao Statistics Bureau: Lao GDP. Retrieved on May 17th 2011 from http://nsc.gov.la/index2.php?option=com_content&view=article&id=31&Itemid=32&lang=en

26. Thank you!

27. Study on the Factors that Caused Increasing Food Prices in LaosCase study: Pork in Vientiane Capital. Sengpheth SENGMEUANG Agricultural policy Laboratory Kyushu University June 21, 2011

28. Contents • Methodology • Questionnaire • Overseas Research Plan

29. Methodology First concept of establishing model: Output = Input 1+ Input 2 + input 3+ Input 4+ Input 5 Where Output denotes the cost/prices of Pork Input 1 represents the prices of oil/fuel (Kip/litre) Input 2 represents the prices of feed (Kip/Kg) Input 3 represents the inflation (percent/month) Input 4 represents the prices of rice (Kip/Kg) Input 5 represents the prices of corn (Kip/kg)

30. Note: CPI-Consumer Price Index by region (Dec,99=100) Source: Ministry of Planning and Investment, Bank of Laos, 20th June 2011

31. Source: Ministry of Planning and Investment

32. Source: Ministry of Industry and Commerce, www.opec.org

33. Questionnaire

34. Overseas Research Plan

35. Overseas Research Plan

36. Overseas Research Plan

37. References • Bank of Laos: Annual Report 2009. Retrieved on June 18th2011 from http://www.bol.gov.la/english/index1.php • Bank of Laos:Inflation and CPI rate. Retrieved on June 19th2011 from http://www.bol.gov.la/english/index1.php • Ministry of Industry and Commerce: Monthly Report (2007-2010). • Lao Statistics Bureau: Consumer Price Index (2000-2010). Retrieved on June 17th 2011 from http://nsc.gov.la

38. Thank you!